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City Developments Limited (CDL) has released a statement clarifying the reason for the trading halt called earlier this morning. According to the company, the halt was due to a disagreement within the board regarding the composition and structure of the board and its committees.
Despite the temporary suspension, CDL assures that its business operations continue as usual and will not be affected. Sherman Kwek will remain as the group CEO until there is a board resolution to change company leadership.
CDL also stated that it will provide further updates in accordance with the Singapore Exchange (SGX) listing rules as the matter is currently under review. In a subsequent statement, Sherman Kwek expresses disappointment over the chairman and a minority of the board’s decision to take legal actions in relation to the disagreement.
He emphasized that the focus of the CEO and directors, with guidance from the company and independent legal counsel, is to improve the company’s governance. The trading halt earlier today was initiated by the company’s chairman and a minority of the board, despite not having the approval of the majority of the board.
It is important to note that the issue has never been about removing the chairman. The efforts to strengthen the board’s composition were solely to ensure that CDL upholds its reputation for having the highest standards of governance and to have robust decision-making within the board. As the matter is now before the courts, CDL will refrain from commenting on the specifics of the case and will provide further updates when necessary.
CDL had announced its FY2024 results on Feb 26, which ended on Dec 31, 2024. The company had also cancelled its 10am results briefing. CDL also made an offer to privatize Millennium & Copthorne Hotels New Zealand for $1.72 per share. CDL’s shares were last traded at $5.12.